Are mobile phone charges set to fall?

Ofcom has announced a new investigation into the UK mobile phone market and the ever-growing cost of connecting to different networks and landlines. It seems that with the exception of British Telecom and the 3 network, the whole UK mobile broadband industry would prefer to maintain a free market with regards to the cost of connecting to different networks across the UK. However, Ofcom has very different ideas!

It is believed the Ofcom is looking to introduce a price cap on the charges which mobile phone and landline companies can charge each other for connecting calls, which could cost the industry upwards of £1 billion a year. As you might guess this would place significant pressure on the finances of many mobile telephone and landline phone companies and potentially reduce the amount of money available for investment in the future.

If Ofcom decides to push ahead with a price cap it is likely we will see a number of telephone companies step forward and threaten to reduce their investment in the short to medium term, something which could scupper the UK government's plans to roll out broadband. It is therefore likely that the regulator and telecom companies will find some middle ground between them and some sort of "fudged" agreement will no doubt prevail.

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